BY PETER EGWUATU

The N20 billion bond raised by the Ekiti State government would boost the state’s tourism sector which was neglected by previous governments.

The bond proceeds would serve as a catalyst for the projects on which have been mapped out by the government.

Specifically, the Ikogosi resort which has been described as a money-spinner would not only generate funds to the coffers of the state government but also open it up for attractions from international communities.

The Ekiti State Commissioner for Finance, Budget and Economic Development, Mr. Dapo Kolawole revealed that , “ the bond, which is meant to finance the Dr. Kayode Fayemi–led administration’s eight-point developmental agenda, was oversubscribed as investors provided N20.3 billion compared with the N20 billion requested.”

He stressed that the option of the bond was to save funds and fast-track development of the state, saying before now, the state was borrowing short-term funds from banks with interest rates as high as 18 per cent.

“But with the 14 per cent on the bond, we are making huge savings and the funds that would boost the treasury of the state. Besides, the funds available to us now means financing of projects would be fast-tracked in order to timely to deliver the dividends of democracy to citizens,” he said.

The proceeds from the bond as gathered would be used to provide infrastructure in the areas of road, market, agriculture, electricity, schools and repayment of bank loans.

In the area of roads, for instance, the state had identified, for construction, 11 roads, which would either be dualised or expanded to improve social-economic activities. This, he said, would take the lion’s share of the funds.

“We are going to rehabilitate the Ero Dam with the main aim of preventing flooding, enhance agricultural development and provision of portable water. We will establish school of agriculture to enhance skilled manpower in the agricultural sector” the Commissioner noted.

He revealed that Governor Fayemi admimistration, had in the last one year, pursued the eight-point agenda, adding that solid human capital was needed for sustainable development and would ensure judicious use of the bond for the good and development of the state.

According to him, the capital market offered the state the opportunity to bridge the gap between people’s expectations and the limited resources that come to the state. The governor’s office, which was originally designed to be a hotel and Ekiti House in Abuja, were products of the N4 billion bond floated by the Adebayo-led administration in 2002.

“We will also construct a Lagos Liaison Office, which will serve as a reference point for indigenes and potential investors seeking information on business opportunities and other programmes of the state government due to its popularity the state intends to increase the tourism potentials of the state through the enhancement of the Ikogosi Warm Springs and Resort Development. This will be a good source of revenue for the state,” he declared.

Kolawole, further explained that rather than mortgage the future of the citizens or impoverish them, floating the bond at this particular time, would save the state huge funds in interest rates.

Speaking at the Completion Board Meeting in Ado-Ekiti, recently, Governor Fayemi had said that contrary to insinuations that the bond would plunge the state into debt, his administration was committed to transparency and accountability.

He explained that the commitment to transparency and accountability led to the declaration of assets by him and his Deputy while some legal frameworks such as the Freedom of Information Act, the Public Procurement law and Fiscal Responsibility Acts, among others had been put in place.

Meanwhile, the Director General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, who was taken round the town prelude to the completion board meeting commended Governor Fayemi for his bold step to approach the capital market.

According to her, I commend your vision for the all-round rapid development by unleashing the potentials of the State.

The SEC boss gave this commendation in Ado Ekiti while signing documents for the N20 billion bond which the State was raising at the capital market, saying that though the State was young, the Dr. Fayemi-led administartion has clearly spelt out its agenda for the transformation of the State.

Oteh, affirmed that there are huge developmental challenges facing the State stressed that the needs of the citizens may remain unmet given the meagre allocation that accrue to the state from the federal account; adding that the State’s bond choice would not plunge it into unnecessary debt but bring about the desired transformation of the state.